Shenzhen Topband Co.Ltd(002139) : report on investor protection in 2021

Shenzhen Topband Co.Ltd(002139)

Report on investor protection in 2021

Shenzhen Topband Co.Ltd(002139) (hereinafter referred to as “the company”) has always attached importance to investors, especially small and medium-sized investors

The protection of investors adheres to the concept of “fearing the market, the rule of law, professionalism and investors”,

After the company was listed on Shenzhen Stock Exchange in 2007, the management has always attached great importance to the protection of investors’ rights and interests,

Committed to creating tangible value returns for the majority of investors. Establish and continuously improve the investor protection mechanism, and

Increase the internal value of the company, standardize corporate governance, fully disclose information, and actively interact with investors

Flow, implementation of continuous dividend policy and other ways to effectively safeguard the rights and interests of investors. Investor protection work of the company in 2021

The report is as follows:

1、 Strive to improve the company’s operating performance and increase the company’s internal value

Through the efforts of all employees of the company, the company’s operating revenue and net profit increased year-on-year in 2021

The current operating income is 7767034800 yuan, a year-on-year increase of 39.69%; The operating profit was 6235182 million yuan,

A year-on-year increase of 0.33%; The net profit attributable to the parent company was 5649643 million yuan, a year-on-year increase of 6.16%.

2、 Pay dividends to shareholders and pay attention to continuous cash return

The company attaches importance to the reasonable return on investment to investors, firmly establishes the awareness of returning shareholders, and takes into account the company

And maintain a continuous and stable profit distribution policy, with particular emphasis on maintaining a continuous and stable cash flow

The cash dividend policy and the cash dividend distribution implemented in the last three years are as follows:

Unit: Yuan

In the dividend year, the consolidated cash dividend is reported. The total cash dividend of repurchased shares is the total amount of cash dividend. In the cash dividend amount statement of dividend year, the amount attributable to the listing accounts for the total amount of repurchased shares (including the degree of repurchased Party (including repurchase method) (including tax) Ratio of net profit attributable to parent company (net profit attributable to parent company) of common shareholders to net profit attributable to parent company

2020560188944553424328035 10.50% 2000435175 3.74% 7602324620 14.23%

2019503758724533082743700 15.23% 5589836750 16.90% 10627423995 32.12%

20181013868508022218660382 45.63% 410163250 1.85% 10548848330 47.48%

On March 22, 2022, the board of directors of the company announced the equity distribution plan for 2021: it is proposed to

The total share capital is 1256978072 shares, and a cash dividend of 0.5 yuan (including tax) is distributed to all shareholders for every 10 shares,

Do not use the accumulation fund to increase the share capital, and do not give bonus shares.

3、 Strictly fulfill commitments

In 2021, the commitments of the company or shareholders, directors, supervisors and senior managers holding more than 5% of the shares or those occurred in previous periods but continued to the reporting period were strictly fulfilled, and there was no breach of commitments.

4、 Strictly fulfill the obligation of information disclosure and continuously improve the level of information disclosure

In strict accordance with the Listing Rules of Shenzhen Stock Exchange and other provisions, the company fully performs the obligation of information disclosure, and truthfully, accurately, completely and timely discloses relevant information through the information disclosure media designated by the CSRC, so as to ensure that all investors can obtain the company’s information fairly. In addition, on the basis of ensuring the compliance of information disclosure, the company appropriately increased voluntary information disclosure. During the reporting period, the company voluntarily increased the disclosure of the English version of the 2020 annual report and the Chinese and English version of the 2020 social responsibility report, so as to facilitate investors to understand the company from multiple dimensions, increase the reading convenience of overseas investors, and enhance the reference and practicability of the company’s information disclosure.

During the reporting period, the company issued 198 regular reports, temporary announcements and relevant documents through the information disclosure media designated by the CSRC. In the future, the company will continue to maintain timely, complete and accurate information disclosure management and improve the internal control mechanism of the company’s information disclosure. Under the guidance of the working rules of the information disclosure Committee, the information disclosure committee will continue to strengthen the supervision and management of the company’s information disclosure and strive to improve the quality of the company’s information disclosure.

5、 Maintain communication with investors

1. Information disclosure: in 2021, the company performed the obligation of information disclosure truthfully, accurately, timely and completely in strict accordance with the requirements of relevant rules, and issued regular reports and temporary announcements in the securities times and cninfo.com;

2. Convening the general meeting of shareholders: the rules of procedure of the general meeting of shareholders are formulated in accordance with the company law, the articles of association, the rules of the general meeting of shareholders of listed companies and other documents, which regulate the power, convening procedures, proposals and voting of the general meeting of shareholders, and provide institutional protection for the rights and interests of small and medium-sized shareholders through rules. In 2021, the company held one annual general meeting and three extraordinary general meetings. A total of 111 small and medium-sized investors participated in the voting of the general meeting on site and online. The general meeting of shareholders adopts the combination of on-site voting and online voting, so that the majority of investors can fully participate in the general meeting of shareholders, ensure the shareholders’ right to know, participate and vote on major matters of the company, count the votes of small and medium-sized investors separately and disclose them in a timely manner in the resolutions of the general meeting of shareholders, so as to fully protect the rights and interests of small and medium-sized investors.

3. Performance presentation and research activities: the company released its 2020 annual report on March 8, 2021, and held an online presentation of the company’s 2020 annual report on the online platform provided by panorama on March 15, 2021. Mr. Wu Yongqiang, chairman and general manager of the company; Ms. Wen Zhaohui, deputy general manager and Secretary of the board of directors; Mr. Xiang Wei, chief financial officer; Mr. Huang Yuegang, independent director China Securities Co.Ltd(601066) sponsor representative Mr. Yu Kangze attended the online performance briefing.

During the explanation meeting, the directors and senior managers responded to the questions raised by investors in a timely manner.

During the reporting period, the company maintained close communication with investors, actively participated in investor exchange meetings organized by domestic and foreign institutions, received investors to the company for on-site investigation or held teleconference from time to time, communicated with hundreds of investment institutions and individual investors through on-site investigation and teleconference in 2021, and simultaneously disclosed 19 research minutes; On November 30, 2021, Ms. Wen Zhaohui, deputy general manager and Secretary of the board of directors of the company, participated in the online collective reception day for investors of listed companies “communicating, transmitting value and creating a good ecology” under the jurisdiction of Shenzhen; Mr. Xiang Wei, chief financial officer, will communicate and interact with investors through online text communication; 4. Multi channel communication platform: the company includes investor hotline (075526957035), fax (075526957440) and email（ [email protected]. ）, investor relations interactive platform, etc. On the basis of complying with relevant laws and regulations on information disclosure, the company actively replies to and responds to the daily inquiries of investors on interactive trading. The company arranges special personnel to maintain the above channels and platforms, ensure that the information fed back by investors can be transmitted to the company in time, answer investors’ questions and accept investors’ opinions and suggestions in time; At the same time, we should effectively broaden the channels of communication with modern technology and through the company website, WeChat official account and small procedures, we will release information on daily business activities to investors and help investors to deepen their understanding in all directions.

6、 Work of independent directors

In 2021, the independent directors of the company were able to attend the meeting of the board of directors on time, attend the general meeting of shareholders as nonvoting delegates and express their opinions and suggestions on the proposal in accordance with the provisions and requirements of the articles of association and the rules of procedure of the board of directors. In this year, the independent directors carefully considered all the proposals submitted to the board of directors and believed that the proposals submitted to the meeting for consideration safeguarded the rights and interests of all shareholders, especially small and medium-sized shareholders. Therefore, they all voted for it and there was no objection or waiver.

7、 Launch the repurchase plan to safeguard the interests of investors

At the beginning of 2022, affected by the epidemic situation in China and international political factors, the A-share market fluctuated. In order to safeguard the interests of investors and enhance investors’ investment confidence in the company, combined with the company’s development strategy, operation and financial situation, the company launched the repurchase plan in 2022, which is the third repurchase plan after 2018 and 2020. It plans to repurchase 40 million to 60 million yuan of shares from the secondary market by centralized bidding, The share repurchase plan is fully used for equity incentive of the company.

8、 Summary of investor protection work report

The company has always attached great importance to investor protection. With continuous efforts, the relevant work has also been recognized by the capital market and affirmed by the regulatory authorities. In 2021, the company was selected as the vice chairman of the first investor relations management committee of Shenzhen listing Association. In the future, we will continue to promote the relevant work of investor relations management of listed companies under our jurisdiction and make new contributions to the quality improvement of Listed Companies in Shenzhen and the healthy and stable development of capital market.

The company will also continue to fulfill the obligation of true, accurate, complete and timely information disclosure, practice the high-quality development concept of listed companies, and constantly improve the investor protection system. The company will practice long-term ism, strive to become a “white horse stock” in the eyes of investors, and effectively create investment returns for corporate investors.

It is hereby announced.

Shenzhen Topband Co.Ltd(002139) board of directors March 22, 2022